Corporate sales rose 6% last year, thanks in large part to a 4% increase in the number of active representatives. The acquisitions of Silpada and Liz Earle also provided a lift in corporate sales.

Beauty accounted for 71% of sales last year (down from 72% in 2009 and 2008), followed by fashion (19%) and home (10%). Beauty sales rose 6%, led by an 11% increase in fragrance sales, as well as a 7% gain in color cosmetics sales and a 5% rise for personal care. However, skin care sales fell 3%.

The gain in fragrance was attributed to the launch of Outspoken by Fergie, which became the biggest fragrance introduction in Avon history. On the other hand, the decline in skin care sales has Avon working overtime to boost sales. Therefore, in developing markets Avon launched Avon Care, a comprehensive line of skin care and body products. Elsewhere, Avon Solutions was revamped with new formulas and packaging. Earlier this year, Avon launched Anew Solar Advance, which promises to repair visible sun damage. In the fourth quarter, Avon will launch a new skin care product that was inspired by genetic research on longevity.

Last year, the number of active representatives grew 4%, down from a 10% gain in 2009. To reenergize its sales staff, Avon has shifted some money away from advertising to field programs that enhance the value proposition for its representatives. For example, in the US, Avon is investing $20 million to improve sales leadership earnings.

“We are pleased with the early progress against our commitment to return the business to mid-single digit revenue growth and deliver 50-70 basis points of operating margin expansion in 2011,” said Andrea Jung, Avon’s chairman and chief executive officer. “We are squarely focused on restoring growth in Brazil and Russia in the second half, and ensuring execution in gross margin improvement and cost control.”